China-based ticketing app operator Maoyan is set to acquire the ticketing service of its local peer Weiying Technology, which is backed by corporates including internet company Tencent, China Money Network reported today.
Weying will transfer some its assets, valued at RMB7bn ($1.06bn) to Maoyan in two to three tranches, beginning with its online film and theatre ticketing units, which are valued at RMB4bn.
Weying will retain its content creation, film distribution, intellectual property derivatives products, equity investments and sports event ticketing assets.
The newly combined entity is expected to hold a 43% share of China’s online cinema and events ticketing market, and Tencent will invest RMB900m in the merged business through an unnamed fund.
Enlight Media and its parent company Enlight Holdings, which hold a majority stake in Maoyan, will own a combined 50.8% in the merged business. Weying will own 27.6%, local services discovery platform Meituan Dianping approximately 8.5% and Tencent 5.6%.
Weying was founded in 2014 by Tencent, growth equity firm Bison Capital and the state-sponsored China Culture Industry Investment Fund. Its app allows users to buy tickets to Chinese cinemas, theatres and exhibition venues.
The company’s shareholders include gaming company Dalian Zeus Entertainment, which led a $693m series C+ round in April 2016 also backed by Tencent and mobile game publisher iDreamSky as well as CMC Holdings, Ocean Capital Group and China Everbright.
Tencent and property-focused conglomerate Dalian Wanda Group had previously contributed to Weiying’s $235m series C round in November 2015 alongside GGV Capital and Beijing Cultural Assets Fund, which led the round. Weying merged with peer Gewara the following month.
Tencent, Wanda and trading group Shanghai Gangtai Group also took part in a $105m series B round for the company in April 2015 together with Wenzi Huasha, Shandong Luxin Investment Holdings Group and eCapital.
Weying spun out its sports ticketing service, Weisai Sports, in November 2015 with an undisclosed amount of funding from Tencent, CMC Holdings, Beijing Cultural Assets Chinese Anci Films & Television Fund and Legend Capital, the VC firm backed by conglomerate Legend Holdings.
Maoyan was founded by Meituan in 2012, prior to its merger with Dianping, before being spun out in April 2016. Enlight then acquired a 57.4% stake the following month in return for a RMB2.38bn investment, according to China Film Insider.